Burke Herbert Profitability Analysis

BHRB Stock  USD 64.61  0.52  0.81%   
Based on Burke Herbert's profitability indicators, Burke Herbert Financial is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in March. Profitability indicators assess Burke Herbert's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2002-09-30
Previous Quarter
-16.9 M
Current Value
27.6 M
Quarterly Volatility
4.9 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Burke Herbert's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Price Sales Ratio is expected to grow to 5.20, whereas Days Sales Outstanding is forecasted to decline to 35.60. At present, Burke Herbert's Operating Income is projected to decrease significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 34.4 M, whereas Accumulated Other Comprehensive Income is projected to grow to (88.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.191.34
Fairly Down
Slightly volatile
Net Profit Margin0.330.24
Significantly Up
Pretty Stable
Operating Profit Margin0.550.29
Way Up
Pretty Stable
Pretax Profit Margin0.420.26
Way Up
Slightly volatile
Return On Assets0.0130.0072
Way Up
Slightly volatile
Return On Equity0.120.0829
Way Up
Pretty Stable
For Burke Herbert profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Burke Herbert to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Burke Herbert Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Burke Herbert's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Burke Herbert Financial over time as well as its relative position and ranking within its peers.
  

Burke Herbert's Revenue Breakdown by Earning Segment

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Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Burke Herbert. If investors know Burke will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Burke Herbert listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.94
Dividend Share
2.16
Earnings Share
2.34
Revenue Per Share
19.136
Quarterly Revenue Growth
2.001
The market value of Burke Herbert Financial is measured differently than its book value, which is the value of Burke that is recorded on the company's balance sheet. Investors also form their own opinion of Burke Herbert's value that differs from its market value or its book value, called intrinsic value, which is Burke Herbert's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Burke Herbert's market value can be influenced by many factors that don't directly affect Burke Herbert's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Burke Herbert's value and its price as these two are different measures arrived at by different means. Investors typically determine if Burke Herbert is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Burke Herbert's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Burke Herbert Financial Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Burke Herbert's current stock value. Our valuation model uses many indicators to compare Burke Herbert value to that of its competitors to determine the firm's financial worth.
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Burke Herbert Financial is rated below average in return on equity category among its peers. It is rated below average in return on asset category among its peers reporting about  0.09  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Burke Herbert Financial is roughly  10.86 . At present, Burke Herbert's Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Burke Herbert's earnings, one of the primary drivers of an investment's value.

Burke Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Burke Herbert

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0684
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Burke Herbert

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0063
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Burke Return On Asset Comparison

0.00630.01310.01260.0078100%
Burke Herbert is currently under evaluation in return on asset category among its peers.

Burke Herbert Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Burke Herbert, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Burke Herbert will eventually generate negative long term returns. The profitability progress is the general direction of Burke Herbert's change in net profit over the period of time. It can combine multiple indicators of Burke Herbert, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-93.1 M-88.5 M
Operating Income32.1 M47.6 M
Net Income From Continuing Ops35.6 M29.7 M
Income Before Tax28.8 M34.4 M
Net Income Applicable To Common Shares50.6 M29.3 M
Net Income26.1 M27.6 M
Income Tax Expense2.1 MM
Total Other Income Expense Net-3.3 M-3.1 M
Net Interest Income114.3 M105.4 M
Interest Income162.5 M124.7 M
Change To Netincome11.2 M11.8 M
Net Income Per Share 2.75  2.78 
Income Quality 1.86  0.94 
Net Income Per E B T 0.81  0.66 

Burke Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Burke Herbert. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Burke Herbert position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Burke Herbert's important profitability drivers and their relationship over time.

Burke Herbert Profitability Trends

Burke Herbert profitability trend refers to the progression of profit or loss within a business. An upward trend means that Burke Herbert's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Burke Herbert's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
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JavaScript chart by amCharts 3.21.15Selling General Administrativetotal: 711.7MTotal Revenuetotal: 1.7BGross Profittotal: 1.8BOperating Incometotal: 776MNon Operating Income Net Othertotal: 0

Burke Herbert Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Burke Herbert different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Burke Herbert in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Burke Herbert's future profitability.

Use Burke Herbert in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Burke Herbert position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Burke Herbert will appreciate offsetting losses from the drop in the long position's value.

Burke Herbert Pair Trading

Burke Herbert Financial Pair Trading Analysis

The ability to find closely correlated positions to Burke Herbert could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Burke Herbert when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Burke Herbert - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Burke Herbert Financial to buy it.
The correlation of Burke Herbert is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Burke Herbert moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Burke Herbert Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Burke Herbert can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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When determining whether Burke Herbert Financial offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Burke Herbert's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Burke Herbert Financial Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Burke Herbert Financial Stock:
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You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
To fully project Burke Herbert's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Burke Herbert Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Burke Herbert's income statement, its balance sheet, and the statement of cash flows.
Potential Burke Herbert investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Burke Herbert investors may work on each financial statement separately, they are all related. The changes in Burke Herbert's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Burke Herbert's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.